0

Electronic

Letter of Credit

20150723

1

Agenda

Traditional LC Process

Electronic LC ndash Issues and Challenges

Tradelink Electronic LC Service

Expanding the Horizon

2

3

Letter of Credit Documents

4

Rule Book For Document Checking

Rule Book Checking

ndash Air waybill

ndash Beneficiary Statement

ndash Bill of Lading

ndash Cargo Receipt

ndash Certificate of Origin

ndash Commercial Invoice

ndash Packing List

ndash Export License

ndash Inspection Certificate

ndash Insurance Certificate

ndash Quota Statement

1

Agenda

Traditional LC Process

Electronic LC ndash Issues and Challenges

Tradelink Electronic LC Service

Expanding the Horizon

2

3

Letter of Credit Documents

4

Rule Book For Document Checking

Rule Book Checking

ndash Air waybill

ndash Beneficiary Statement

ndash Bill of Lading

ndash Cargo Receipt

ndash Certificate of Origin

ndash Commercial Invoice

ndash Packing List

ndash Export License

ndash Inspection Certificate

ndash Insurance Certificate

ndash Quota Statement

2

3

Letter of Credit Documents

4

Rule Book For Document Checking

Rule Book Checking

ndash Air waybill

ndash Beneficiary Statement

ndash Bill of Lading

ndash Cargo Receipt

ndash Certificate of Origin

ndash Commercial Invoice

ndash Packing List

ndash Export License

ndash Inspection Certificate

ndash Insurance Certificate

ndash Quota Statement

3

Letter of Credit Documents

4

Rule Book For Document Checking

Rule Book Checking

ndash Air waybill

ndash Beneficiary Statement

ndash Bill of Lading

ndash Cargo Receipt

ndash Certificate of Origin

ndash Commercial Invoice

ndash Packing List

ndash Export License

ndash Inspection Certificate

ndash Insurance Certificate

ndash Quota Statement

4

Rule Book For Document Checking

Rule Book Checking

ndash Air waybill

ndash Beneficiary Statement

ndash Bill of Lading

ndash Cargo Receipt

ndash Certificate of Origin

ndash Commercial Invoice

ndash Packing List

ndash Export License

ndash Inspection Certificate

ndash Insurance Certificate

ndash Quota Statement

5

6

Electronic Letter of Credit

Issuing bank issues e-LC to Advising bank

Most banks use SWIFT format (MT700) amp channel

There are special message codes for letter of credit data that

allow SWIFT messages to be processed by computer

7

Electronic LC Advising

Advising BankIssuing Bank

MT700 MT700

8

LC Advise amp Document Collection

Document

Format

Channel

9

Negotiability

LC can be negotiable

How to address the duplication integrity authenticity issues with

electronic documents

Bill Of Lading Electronic Registry Organization (BOLERO)

ndash Rulebook - common legal agreement entered into by all users

ndash Title Registry ndash repository to manage the transfer of title documents

ndash Exchange ndash common infrastructure to facilitate document exchange

ndash Rigorous registration system

ndash Unable to gain momentum in this region

10

Tradelink eLC Service

11

DTTN - A Common Digital Platform

To Facilitate Document Exchange (Any to Any)

12

DTTN Supports the Entire Supply-Chain

Purchase Process Purchase Sales Order Order Confirmation

Packing List ASN Commercial Invoice

Inspection Certificate InsuranceDelivery

Booking Shipping Order Arrival Notices

Transport Documents - Master House

Waybill - Sea Air Cargo Receipt

Transport Set EIR Delivery Release

Order

Local and OverseasTransportation

Government Trade DocumentsExport Import License

Customs Clearance

Certification of Origin etc

Financial Settlement Letter of Credit Company Guarantee Bill of Exchange

LC collection Letter Document Arrival Notice

88+ major documents related to trade logistics and finance for both import

and export business processes

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

6

Electronic Letter of Credit

Issuing bank issues e-LC to Advising bank

Most banks use SWIFT format (MT700) amp channel

There are special message codes for letter of credit data that

allow SWIFT messages to be processed by computer

7

Electronic LC Advising

Advising BankIssuing Bank

MT700 MT700

8

LC Advise amp Document Collection

Document

Format

Channel

9

Negotiability

LC can be negotiable

How to address the duplication integrity authenticity issues with

electronic documents

Bill Of Lading Electronic Registry Organization (BOLERO)

ndash Rulebook - common legal agreement entered into by all users

ndash Title Registry ndash repository to manage the transfer of title documents

ndash Exchange ndash common infrastructure to facilitate document exchange

ndash Rigorous registration system

ndash Unable to gain momentum in this region

10

Tradelink eLC Service

11

DTTN - A Common Digital Platform

To Facilitate Document Exchange (Any to Any)

12

DTTN Supports the Entire Supply-Chain

Purchase Process Purchase Sales Order Order Confirmation

Packing List ASN Commercial Invoice

Inspection Certificate InsuranceDelivery

Booking Shipping Order Arrival Notices

Transport Documents - Master House

Waybill - Sea Air Cargo Receipt

Transport Set EIR Delivery Release

Order

Local and OverseasTransportation

Government Trade DocumentsExport Import License

Customs Clearance

Certification of Origin etc

Financial Settlement Letter of Credit Company Guarantee Bill of Exchange

LC collection Letter Document Arrival Notice

88+ major documents related to trade logistics and finance for both import

and export business processes

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

7

Electronic LC Advising

Advising BankIssuing Bank

MT700 MT700

8

LC Advise amp Document Collection

Document

Format

Channel

9

Negotiability

LC can be negotiable

How to address the duplication integrity authenticity issues with

electronic documents

Bill Of Lading Electronic Registry Organization (BOLERO)

ndash Rulebook - common legal agreement entered into by all users

ndash Title Registry ndash repository to manage the transfer of title documents

ndash Exchange ndash common infrastructure to facilitate document exchange

ndash Rigorous registration system

ndash Unable to gain momentum in this region

10

Tradelink eLC Service

11

DTTN - A Common Digital Platform

To Facilitate Document Exchange (Any to Any)

12

DTTN Supports the Entire Supply-Chain

Purchase Process Purchase Sales Order Order Confirmation

Packing List ASN Commercial Invoice

Inspection Certificate InsuranceDelivery

Booking Shipping Order Arrival Notices

Transport Documents - Master House

Waybill - Sea Air Cargo Receipt

Transport Set EIR Delivery Release

Order

Local and OverseasTransportation

Government Trade DocumentsExport Import License

Customs Clearance

Certification of Origin etc

Financial Settlement Letter of Credit Company Guarantee Bill of Exchange

LC collection Letter Document Arrival Notice

88+ major documents related to trade logistics and finance for both import

and export business processes

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

8

LC Advise amp Document Collection

Document

Format

Channel

9

Negotiability

LC can be negotiable

How to address the duplication integrity authenticity issues with

electronic documents

Bill Of Lading Electronic Registry Organization (BOLERO)

ndash Rulebook - common legal agreement entered into by all users

ndash Title Registry ndash repository to manage the transfer of title documents

ndash Exchange ndash common infrastructure to facilitate document exchange

ndash Rigorous registration system

ndash Unable to gain momentum in this region

10

Tradelink eLC Service

11

DTTN - A Common Digital Platform

To Facilitate Document Exchange (Any to Any)

12

DTTN Supports the Entire Supply-Chain

Purchase Process Purchase Sales Order Order Confirmation

Packing List ASN Commercial Invoice

Inspection Certificate InsuranceDelivery

Booking Shipping Order Arrival Notices

Transport Documents - Master House

Waybill - Sea Air Cargo Receipt

Transport Set EIR Delivery Release

Order

Local and OverseasTransportation

Government Trade DocumentsExport Import License

Customs Clearance

Certification of Origin etc

Financial Settlement Letter of Credit Company Guarantee Bill of Exchange

LC collection Letter Document Arrival Notice

88+ major documents related to trade logistics and finance for both import

and export business processes

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

9

Negotiability

LC can be negotiable

How to address the duplication integrity authenticity issues with

electronic documents

Bill Of Lading Electronic Registry Organization (BOLERO)

ndash Rulebook - common legal agreement entered into by all users

ndash Title Registry ndash repository to manage the transfer of title documents

ndash Exchange ndash common infrastructure to facilitate document exchange

ndash Rigorous registration system

ndash Unable to gain momentum in this region

10

Tradelink eLC Service

11

DTTN - A Common Digital Platform

To Facilitate Document Exchange (Any to Any)

12

DTTN Supports the Entire Supply-Chain

Purchase Process Purchase Sales Order Order Confirmation

Packing List ASN Commercial Invoice

Inspection Certificate InsuranceDelivery

Booking Shipping Order Arrival Notices

Transport Documents - Master House

Waybill - Sea Air Cargo Receipt

Transport Set EIR Delivery Release

Order

Local and OverseasTransportation

Government Trade DocumentsExport Import License

Customs Clearance

Certification of Origin etc

Financial Settlement Letter of Credit Company Guarantee Bill of Exchange

LC collection Letter Document Arrival Notice

88+ major documents related to trade logistics and finance for both import

and export business processes

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

10

Tradelink eLC Service

11

DTTN - A Common Digital Platform

To Facilitate Document Exchange (Any to Any)

12

DTTN Supports the Entire Supply-Chain

Purchase Process Purchase Sales Order Order Confirmation

Packing List ASN Commercial Invoice

Inspection Certificate InsuranceDelivery

Booking Shipping Order Arrival Notices

Transport Documents - Master House

Waybill - Sea Air Cargo Receipt

Transport Set EIR Delivery Release

Order

Local and OverseasTransportation

Government Trade DocumentsExport Import License

Customs Clearance

Certification of Origin etc

Financial Settlement Letter of Credit Company Guarantee Bill of Exchange

LC collection Letter Document Arrival Notice

88+ major documents related to trade logistics and finance for both import

and export business processes

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

11

DTTN - A Common Digital Platform

To Facilitate Document Exchange (Any to Any)

12

DTTN Supports the Entire Supply-Chain

Purchase Process Purchase Sales Order Order Confirmation

Packing List ASN Commercial Invoice

Inspection Certificate InsuranceDelivery

Booking Shipping Order Arrival Notices

Transport Documents - Master House

Waybill - Sea Air Cargo Receipt

Transport Set EIR Delivery Release

Order

Local and OverseasTransportation

Government Trade DocumentsExport Import License

Customs Clearance

Certification of Origin etc

Financial Settlement Letter of Credit Company Guarantee Bill of Exchange

LC collection Letter Document Arrival Notice

88+ major documents related to trade logistics and finance for both import

and export business processes

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

12

DTTN Supports the Entire Supply-Chain

Purchase Process Purchase Sales Order Order Confirmation

Packing List ASN Commercial Invoice

Inspection Certificate InsuranceDelivery

Booking Shipping Order Arrival Notices

Transport Documents - Master House

Waybill - Sea Air Cargo Receipt

Transport Set EIR Delivery Release

Order

Local and OverseasTransportation

Government Trade DocumentsExport Import License

Customs Clearance

Certification of Origin etc

Financial Settlement Letter of Credit Company Guarantee Bill of Exchange

LC collection Letter Document Arrival Notice

88+ major documents related to trade logistics and finance for both import

and export business processes

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

13

E-Document Exchange

Business

Matching

Receive

POProduction Inspection Insurance

Chamber

of

Commerce

CustomsOutbound

Logistic

Freight

ForwarderTerminal Payment

International Trade

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

14

Tradelink Electronic Letter of CreditElectronic LC Service

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

15

Tradelink Electronic Letter of CreditElectronic LC Advising

16

Tradelink Electronic Letter of CreditElectronic Document Collection

16

Tradelink Electronic Letter of CreditElectronic Document Collection

17

BuyerSeller

EDI

Bonded

Warehouse

TransactionWarehouse

Airliners

Shippers

TransportCY Inspection

QuarantineForwarder Government Services

Bridging the Trading

and the Banking

Industries

Advising BankIssuing Bank

18

Prepare Shipment Documentation

(Invoice)

19

Prepare Shipment Documentation

(Packing List)

20

Receive eSWB from Forwarder

21

Inspection Report

22

Compliance Checking of Full Set Document

23

e-Signing on Full Set Document to Buyer

24

Expanding the Horizon

25

Expanding the Horizon

18

Prepare Shipment Documentation

(Invoice)

19

Prepare Shipment Documentation

(Packing List)

20

Receive eSWB from Forwarder

21

Inspection Report

22

Compliance Checking of Full Set Document

23

e-Signing on Full Set Document to Buyer

24

Expanding the Horizon

25

Expanding the Horizon

19

Prepare Shipment Documentation

(Packing List)

20

Receive eSWB from Forwarder

21

Inspection Report

22

Compliance Checking of Full Set Document

23

e-Signing on Full Set Document to Buyer

24

Expanding the Horizon

25

Expanding the Horizon

20

Receive eSWB from Forwarder

21

Inspection Report

22

Compliance Checking of Full Set Document

23

e-Signing on Full Set Document to Buyer

24

Expanding the Horizon

25

Expanding the Horizon

21

Inspection Report

22

Compliance Checking of Full Set Document

23

e-Signing on Full Set Document to Buyer

24

Expanding the Horizon

25

Expanding the Horizon

22

Compliance Checking of Full Set Document

23

e-Signing on Full Set Document to Buyer

24

Expanding the Horizon

25

Expanding the Horizon

23

e-Signing on Full Set Document to Buyer

24

Expanding the Horizon

25

Expanding the Horizon

24

Expanding the Horizon

25

Expanding the Horizon

25

Expanding the Horizon

26

Discussion

27

Tradelink Electronic Letter of CreditValue Proposition of the Partnership

28

Tradelink Electronic Letter of CreditThe Combined Strength

27

Tradelink Electronic Letter of CreditValue Proposition of the Partnership

28

Tradelink Electronic Letter of CreditThe Combined Strength

28

Tradelink Electronic Letter of CreditThe Combined Strength